Little Things Matter

Interest rates are one of life's little things that matter. SGD1,000 grows to SGD1,188 in just five years at an interest rate of 3.5%. And the same amount grows to SGD1,411 in 10 years – all without you having to lift a finger. This is what the finance industry calls "compounding": making your savings work harder for you.

And it becomes more powerful when given more savings to work with. Someone who puts aside SGD1,000 each month from the age of 35 can end up with nearly half a million by the time 60 rolls around. But someone who starts saving even earlier, at the age of 25, has the benefit of time to more-than-double the nest egg to SGD682,387. Not shabby at all!